A. The gross receipts or gross proceeds derived from charges for locksmith services are subject to gross receipts tax.
B. For purposes of this rule, "locksmith services" means repairing, replacing, servicing, or installing locks and locking devices, whether the locks and locking devices are:
1. Incorporated into real property;
2. Incorporated into tangible personal property; or
3. Locks separate and apart from other property.
C. "Locksmith services" also includes unlocking locks or locking devices for another person.
D. "Locksmith services" shall not include the initial installation of locks in new construction.
E. EXAMPLES. The following examples are intended to illustrate how the tax is applied to certain charges for locksmith services. All examples provided herein are based upon the specific statement of facts set forth in the example. Any change in the facts could result in a different conclusion. In no case are these examples intended to limit the application of tax to other transactions.

Example 1: A contractor or locksmith installs the initial locks in a newly constructed commercial or residential building. The contractor or locksmith should pay tax on the cost of the locks. The charge for the service of installing the locks is not subject to tax.

Example 2: A motorist locks his keys inside his automobile. The charge for unlocking the door to the automobile is subject to tax.

Example 3: Charges for the unlocking of, repair to, or service to padlocks or combination locks that are not incorporated into real property are subject to tax.

Example 4: Repairing or replacing a lock or locks in an existing home or building is subject to tax.


006.05.06 Ark. Code R. § 9.15

Ark. Code Ann. § 26-52-316

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